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Budget 2018 impact: Steel sector to see a marginal increase in fuel cost

India imports nearly 85 per cent of its annual coking coal requirement of about 57 million tonnes

Megha Manchanda  |  New Delhi 

Budget 2018 impact: Steel sector to see a marginal increase in fuel cost

The sector is likely to see a marginal increase in fuel cost, since the new Customs duty will affect the price of imported coking

The may also not help the domestic much, as it will be calculated on imported without including anti-dumping and safeguard duties, say sources in the sector. Currently, coking attracts Customs duty of 2.5 per cent.

According to an official, “The impact on us is not (going to be) huge. Any rise in Customs duty structure helps the domestic

After the announcement in the proposals, Sajjan Jindal, chairman of JSW Steel, had tweeted: “Replacing the education cess of 3 per cent on Customs duty with a of 10 per cent will have a net impact of 7 per cent. The cost of raw material for manufacturing is bound to go up and the will, in turn, transfer it to the end user.”

India imports nearly 85 per cent of its annual coking requirement of about 57 million tonnes. By the National Policy, domestic coking requirements will more than double by 2030-31. The policy, announced last May, aims to increase the domestic availability of washed coking coal, to reduce import dependence on the raw material from 85 per cent to around 65 per cent by then.

First Published: Sat, February 03 2018. 05:46 IST
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